CAGR Calculator
Calculate the Compound Annual Growth Rate (CAGR) between an initial and final value over a number of years, instantly in your browser.
How to use the CAGR Calculator
- Enter the initial (starting) value of the investment or metric.
- Enter the final (ending) value.
- Enter the number of years between the two values.
- Click Run to see the compound annual growth rate as a percentage.
How the CAGR Calculator works
CAGR answers the question: what constant yearly growth rate would turn the starting value into the ending value over this period? It smooths out the ups and downs of individual years into a single comparable rate.
CAGR = (Final value ÷ Initial value)1 ÷ years − 1
For example, growing from 10,000 to 20,000 over 5 years gives (2)0.2 − 1 ≈ 14.87% per year. CAGR is ideal for comparing investments or business growth across different time spans, but it hides volatility: two investments with the same CAGR can have taken very different paths.
Frequently asked questions
- Is this CAGR calculator free?
- Yes. Calculate CAGR at no cost, with no account required.
- What is CAGR?
- CAGR (Compound Annual Growth Rate) is the constant annual rate of return that would grow an initial value to a final value over a given number of years.
- How is CAGR calculated?
- CAGR = ((Final value / Initial value) ^ (1 / years) - 1) x 100.